According to An Gia’s leadership, 2023 was a challenging year for the real estate industry, with capital shortages, rapidly changing interest rate environments, and legal issues impacting businesses in the sector. Despite these challenges, An Gia made significant efforts to overcome difficulties and strive to achieve and exceed the plan set out at the 2023 Annual General Meeting of Shareholders.
TARGETING A 43% INCREASE IN PROFIT FOR 2024
In 2023, the company achieved net revenue of VND 3,891 billion and after-tax profit to parent company shareholders of VND 175 billion, exceeding the plan by 30% and 75%, respectively. Last year’s revenue mainly came from the handover of the Westgate complex with over 2,000 products in Binh Chanh, Ho Chi Minh City.
The company did not issue new bonds and maintained a low and safe debt ratio. As of December 31, 2023, the debt-to-equity ratio was only 0.51 times, and the bond debt-to-equity ratio was reduced to a very low level of 0.11 times. An Gia diversified its project development capital sources, proactively arranged capital, and avoided cash flow dependence and passivity.
Moreover, An Gia consistently implemented and handed over projects, ensuring stable cash flow and proper use of bond proceeds to fulfill financial obligations to bondholders. As of the end of 2023, An Gia’s outstanding bonds totaled nearly VND 315 billion. The company is confident in bringing the bond balance to zero in the first half of this year thanks to the sales of remaining products at the Westgate project in Binh Chanh, Ho Chi Minh City, and The Standard project in Binh Duong.
The company’s leadership expects 2024 to present challenges but also open up various opportunities, especially in acquiring additional land funds with favorable prices, clear legal status, and fast implementation processes. For existing land funds with incomplete legal procedures, An Gia will continue to expedite the necessary steps to prepare for construction, implementation, and sales.
Therefore, the company sets a target for 2024 with net revenue of VND 1,600 billion and after-tax profit to parent company shareholders of VND 250 billion, a 43% increase compared to the previous year. To achieve this goal, An Gia will continue to hand over and recognize revenue from the sale of remaining products at the Westgate project in Binh Chanh, Ho Chi Minh City, and The Standard project in Binh Duong. The company is also preparing resources to invest in and implement The Gio Riverside project this year to contribute to the realization of the business plan.
In the first quarter of 2024, An Gia achieved net revenue of nearly VND 1,313 billion, seven times higher than the same period last year. After-tax profit to parent company shareholders exceeded VND 200 billion, a 43-fold increase year-on-year, thanks to the continued handover of products at Westgate in Ho Chi Minh City and The Standard in Binh Duong.
As of March 31, the company’s total assets reached nearly VND 8,482 billion. Inventories decreased by 39% compared to the beginning of the year, standing at VND 1,229 billion, mainly in projects under construction, and decreased significantly as the company handed over products to customers. Financial debt at the end of the period was VND 1,490 billion, unchanged from the beginning of the year. The debt-to-equity ratio was maintained at a safe level of 0.48 times.
INCREASING CHARTER CAPITAL TO VND 1,625 BILLION, PAYING 25% DIVIDENDS
One of the important agenda items of this meeting was the plan to increase the charter capital to VND 1,625 billion. The issuance is expected to take place this year or depending on the completion of the necessary procedures as prescribed.
The Board of Directors proposed to the shareholders a plan to issue shares to pay dividends at a rate of 25% of the circulating shares at the time of issuance. This dividend rate is higher than the 10% average that An Gia has been paying to shareholders in previous years.
Another proposal presented by the Board of Directors was the issuance of shares under the Employee Stock Ownership Plan (ESOP) to enhance the connection between the company and its employees, management, and executives. The maximum number of shares to be issued is over 6.13 million, equivalent to 4.9% of the circulating shares at the time of issuance.
At this meeting, An Gia’s shareholders also elected the Board of Directors for the new term of 2024-2029. The board comprises three members, including one independent director. The elected members of the Board of Directors for the new term are Mr. Nguyen Ba Sang, Mr. Louis T. Nguyen, and Mr. Le Duy Binh (independent director).
